On April 16, 2014, Tuxedo Company purchased $75,000 of merchandise inventory. Terms of the purchase included a discount of 3/10, n/30. Also, the freight terms were FOB destination. Freight costs amounted to $2,300. Tuxedo Company paid the account payable on April 24. Tuxedo Company sold all inventory for $93,750.
Required:
Determine the amount of gross margin Tuxedo Company would report on the income statement.

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The Answer of On April 16, 2014, Tuxedo Company purchased $75,000 of merchandise inventory. Terms of the purchase included a discount of 3/10, n/30. Also, the freight terms were FOB destination. Freight costs amounted to $2,300. Tuxedo Company paid the account payable on April 24. Tuxedo Company sold all inventory for $93,750.
Required:
Determine the amount of gross margin Tuxedo Company would report on the income statement.

On April 16, 2014, Tuxedo Company Purchased $75,000 of Merchandise